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Informist, Tuesday, Apr. 7, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold and silver rose on the Multi Commodity Exchange of India Tuesday, tracking a rise in contracts on the COMEX because of a weak dollar. However, the gains are likely to be limited as market participants are cautious ahead of the deadline set by US President Donald Trump for Iran to reopen the Strait of Hormuz, analysts said.

 

Gold and silver prices will remain volatile this week due to volatility in the dollar index and crude oil prices because of the US-Iran war, said Manoj Jain, director of Prithvi Finmart.

 

At 1620 IST, the most-active June contract of GOLD was up 0.3% at INR 150,431 per 10 grams on the MCX. The most-active June contract on the COMEX was up 0.4% at $4,719.0 per ounce. The most-active May SILVER contract on the MCX was up 0.3% at INR 233,969 per kilogram. The same-month contract on the COMEX was up 0.4% at $73.16 per ounce.

 

At 1623 IST, the dollar index, which measures the greenback's strength against a basket of six major currencies, was down 0.2% at 99.81. A weaker dollar makes dollar-denominated commodities such as gold and silver cheaper for holders of other currencies, boosting demand.

 

However, gains in bullion prices are likely to be capped as the market is cautious ahead of the deadline set by Trump, Jain said. Trump has repeatedly threatened 'total demolition' of Iran's power plants and bridges if it fails to reopen the Strait of Hormuz by Tuesday night. Iran Monday said it wanted a lasting end to the war with the US and Israel, and pushed back against pressure to reopen the Strait of Hormuz, while Trump warned that the country could be "taken out" if it did not meet his Tuesday night deadline to reach a deal.

 

"Escalating war in Middle East (West Asia) and closure of Strait of Hormuz has sent energy prices soaring leading to inflation worries and likelihood that central banks may have to delay cutting rates or even raise them," ICICI direct said in a report.

 

Meanwhile, Cleveland Federal Reserve President Beth Hammack and Chicago Fed President Austan Goolsbee said they ‌see inflation as a far bigger problem than employment, underscoring their support for maintaining tighter monetary policy.

 

Investors now await minutes of the Federal Reserve's March policy meeting on Wednesday, as well as US inflation indicators, as also personal consumption expenditures and consumer price index data, later this week. "As per CME Fed Watch tool markets are now expecting the US Fed to keep rates unchanged through the rest of the year, compared to earlier projection of two rate cuts," analysts at Kedia Advisory said.

 

Outlook for the rest of the session:

--MCX gold seen at INR 147,000–INR 154,000 per 10 grams

--COMEX gold seen at $4,630.0–$4,730.0 an ounce

--MCX silver seen at INR 228,000-INR 238,000 per kg

--COMEX silver seen at $70.00-$75.00 an ounce

End

 

US$1 = INR 93.01

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

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